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DECREE OF THE GOVERNMENT

On the establishment and operation of representative offices

of foreign cooperation and research organizations in Vietnam

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of December 25, 2001;

At the proposal of the Minister of Foreign Affairs,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- This Decree prescribes the establishment and operation of representative offices of foreign cooperation and research organizations in Vietnam (hereinafter called representative offices).

The establishment and operation of representative offices of foreign cultural and educational organizations in Vietnam shall not be governed by this Decree and comply with the provisions of the Government's Decree No. 18/2001/ND-CP of May 4, 2001 prescribing the setting up and operation of foreign cultural and educational institutions in Vietnam.

Article 2.- Foreign cooperation and research organizations prescribed in this Decree are units under ministries, branches or local administrations of foreign countries, which carry out non-profit activities in Vietnam in order to support cooperation, manage programs and projects, and conduct research into the domains of science, technology, natural resources and environment, health and social affairs (hereinafter called foreign organizations) with partners being Vietnamese ministries, branches or provincial/municipal People's Committees (hereinafter called Vietnamese managing agencies).

Article 3.- Representative offices shall represent foreign organizations in relations with the Vietnamese Government's agencies, in promoting the formulation, urging and supervising the execution of, Vietnam-based foreign organizations' cooperation projects and programs in professional domains. A foreign organization may set up one or more representative offices in Vietnam.

Article 4.- Representative offices may operate only after they are granted permits by the Vietnamese Ministry of Foreign Affairs.

Chapter II

CONDITIONS AND PROCEDURES FOR GRANTING, AMENDING,

EXTENDING AND WITHDRAWING PERMITS FOR SETTING UP

REPRESENTATIVE OFFICES

Article 5.- Foreign organizations shall be granted permits for setting up representative offices when they fully meet the following conditions:

1. Having charters and clear operation principles and purposes, which are in line with Vietnamese managing agencies' cooperation and research domains.

2. Having 5-year or longer-term cooperation or research programs and/or projects in Vietnam, which are approved by Vietnamese competent agencies.

3. Having the legal person status under laws of the countries where foreign organizations are headquartered.

4. Being permitted by foreign managing ministries, branches or local administrations to set up representative offices in Vietnam.

Article 6.- A dossier of application for setting up a representative office in Vietnam consists of:

1. The written request for setting up the foreign organization's representative office in Vietnam with the following principal contents:

a/ The name of the foreign organization, the location of its headquarters; the name of the managing ministry, branch or local administration;

b/ The brief development history, functions and tasks of the foreign organization, cooperation activities which have been being carried out in other countries in the region and the world;

c/ Five-year or longer-term operation programs, projects and plans in Vietnam;

d/ Reasons for setting up the representative office, the location of the representative office in Vietnam, expected number of foreigners and Vietnamese working at the representative office;

e/ The commitment to observe Vietnamese law by the representative office and its staff, not to carry out profit-generating or other activities outside the cooperation programs or projects already approved by Vietnamese managing agencies.

2. The operation charter or regulation of the foreign organization.

3. The document(s) of foreign managing ministry, branch or local administration, permitting the foreign organization to set up its representative office in Vietnam; the written certification of the foreign organization's legal persons status, issued by the competent agency of the country where the foreign organization is headquartered.

4. Documents on programs or projects approved by Vietnamese managing agencies.

5. Resume of the person expected to be appointed the head of the representative office and letter of recommendation or appointment decision for the head of the representative office in Vietnam, made by the head of the ministry, branch or local administration managing the foreign organization.

Article 7.- Foreign organizations that apply for the setting up of representative offices must each submit 3 sets of dossier to the Ministry of Foreign Affairs. Within 30 days after receiving the complete and valid dossiers, the Ministry of Foreign Affairs shall consider granting or refuse to grant permits for setting up representative offices (hereinafter called permits) to foreign organizations. In case of refusal to grant permits, the Ministry of Foreign Affairs shall reply foreign organizations in writing.

The Ministry of Foreign Affairs shall detail the contents of permits for setting up foreign organizations' representative offices in Vietnam.

Article 8.- The permit-granting order shall be as follows:

1. The Ministry of Foreign Affairs shall send official dispatches enclosed with dossiers of application for setting up foreign organizations' representative offices to Vietnamese managing agencies and relevant agencies for comments. Within 15 days after receiving such official dispatches, the commenting agencies must reply the Ministry of Foreign Affairs in writing.

2. The Ministry of Foreign Affairs shall consider the grant of permits to representative offices after consulting the concerned ministries and agencies. In case of divergent opinions, the Ministry of Foreign Affairs shall submit such to the Prime Minister for consideration and decision.

3. When granting permits to representative offices, the Ministry of Foreign Affairs shall have to notify managing agencies, concerned ministries and agencies, and People's Committees of the provinces or cities where the representative offices are headquartered for performance of the function of State management over the operation of the representative offices.

Article 9.- Permits' duration shall be prescribed on the basis of foreign organizations' proposals, which, however, shall not be longer than the operation duration of cooperation or research programs or projects of foreign organizations in Vietnam. If wishing to extend the permits, foreign organizations shall send applications therefor to the Ministry of Foreign Affairs at least 30 days before the permits expire.

Article 10.- When wishing to amend and/or supplement the contents of the granted permits, foreign organizations must send written requests to the Ministry of Foreign Affairs. The Ministry of Foreign Affairs should consult Vietnamese managing agencies and the People's Committees of the provinces or cities where representative offices are headquartered. If approving the amendment or supplementation, the Ministry of Foreign Affairs shall inscribe the amended/supplemented contents in the granted permits or grant new permits to the representative offices. If disapproving the amendment or supplementation, the Ministry of Foreign Affairs shall notify the representative offices thereof in writing. The amendment and supplementation of permits mentioned in this Article shall be made within 30 days after the Ministry of Foreign Affairs receives the written requests of foreign organizations.

Article 11.- Permits for setting up representative offices shall be withdrawn in cases where representative offices or foreign organizations carry out activities at variance with the granted permits, violate the provisions of this Decree or other relevant provisions of Vietnamese law, or their programs or projects in Vietnam are forced to terminate ahead of schedule.

Article 12.- Within 90 days after being notified to terminate their operation, the representative offices must complete all procedures related to debts, taxes, wages, social insurance regime, house rentals and other financial obligations (if any), liquidate assets and contracts, return the permits, destroy seals and send written reports to the Ministry of Foreign Affairs and Vietnamese managing agencies. In cases where it is so approved by the Ministry of Foreign Affairs and Vietnamese managing agencies, this duration may be extended but shall not exceed one year.

Chapter III

INTERESTS AND OBLIGATIONS OF REPRESENTATIVE OFFICES

Article 13.- Interests

1. Interests of representative offices:

a/ After being granted permits, representative offices may rent working offices, dwelling houses and recruit employees according to relevant provisions of Vietnamese law;

b/ Representative offices shall be protected under Vietnamese law and may open exclusive expenditure accounts (in foreign currencies or Vietnam dong of foreign-currency origin);

c/ The use of seals by representative offices shall comply with Vietnam's current law provisions on management and use of seals;

d/ Equipment and cars necessary for operation of representative offices shall be exempt from import tax according to Vietnam's current law provisions.

2. Representative offices' heads and staff members being foreigners shall enjoy tax preferences according to Vietnam's current law provisions, applicable to representations of international organizations in Vietnam.

Article 14.- Obligations and responsibilities

1. Operation of representative offices in Vietnam must strictly comply with the operation contents and scope prescribed in the granted permits.

2. Representative offices' heads shall be answerable for all activities of the representative offices and foreign organizations in Vietnam, have to send biannual and annual written reports to the Ministry of Foreign Affairs and Vietnamese managing agencies on the operation of their organizations in Vietnam, and at the same time have to report on, provide documents, or explain issues related to, the operation of their organizations to the Ministry of Foreign Affairs and Vietnamese managing agencies when so requested.

3. Foreign employees of representative offices:

a/ To strictly follow the purposes of their entry into Vietnam, not to conduct profit-generating activities or any other activities, which are irrelevant to the execution of programs or projects approved by Vietnamese competent agencies or which are not prescribed in the permits;

b/ Not to conduct other professional or technical activities if such is not approved in writing by Vietnamese managing agencies;

c/ To strictly observe Vietnamese law and respect Vietnamese customs and practices. All acts of violating Vietnamese law by representative offices' employees shall be handled according to the provisions of Vietnamese law.

Chapter IV

STATE MANAGEMENT

Article 15.- The Ministry of Foreign Affairs shall act as the main body assisting the Government in performing the unified State management over the operation of foreign organizations' representative offices in Vietnam.

Article 16.- Vietnamese managing agencies shall have to monitor, urge and inspect the operation of representative offices and send annual reports to the Ministry of Foreign Affairs on operation of foreign organizations' representative offices in the domains under their respective management. The Ministry of Foreign Affairs shall have to synthesize and report to the Prime Minister on the operation of foreign organizations' representative offices in Vietnam.

Article 17.- The People's Committees of the provinces or centrally-run cities where representative offices are headquartered shall have to manage the operation of representative offices according to their respective State management functions and competence.

Chapter V

IMPLEMENTATION PROVISIONS

Article 18.- On the basis of the provisions of this Decree, Vietnamese managing agencies shall sign a written agreement with each foreign organization that wishes to set up its representative office(s) in Vietnam in order to detail cooperation contents, scope, powers and responsibilities of the foreign organization's representative office(s), the number of foreign employees working for the representative office(s), the specific quantity of equipment and cars for the representative office(s), and foreign employees' personal belongings permitted for tax-free temporary import for re-export, suitable to situation and particularities of the operation of the foreign organization in Vietnam. Before signing agreements, Vietnamese managing agencies shall have to consult the Ministry of Foreign Affairs as well as concerned ministries, branches and provincial/municipal People's Committees.

Article 19.- Foreign organizations which have been permitted by the Vietnamese Government to set up their representative offices before this Decree takes effect may continue with the operation thereof under the granted permits but have to supplement and finalize the dossiers, based on the provisions of this Decree, within 60 days after the effective date of this Decree.

Article 20.- This Decree takes effect 15 days after its publication in the Official Gazette. The Ministry of Foreign Affairs shall have to guide the implementation of this Decree.

Article 21.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the provincial/municipal People's Committees shall have to implement this Decree./.